___________ inventory is the costliest form of inventory one can hold.
A)Finished goods
B)Raw materials
C)Components
D)Work-in-process

Question

Quizplus · Accepted Answer

Finished goods inventory includes the cost of raw materials, labor, and overhead expenses that go into producing the final product. It also includes additional costs such as packaging, shipping, and marketing. Holding finished goods inventory for a long time increases the risk of obsolescence or damage, leading to costlier inventory. On the other hand, raw materials, components, and work-in-process inventory can be managed more efficiently and do not have the same level of added costs as finished goods inventory.

___________ Inventory Is the Costliest Form of Inventory One Can